Backpacker Tax – No U-turn but concessions made.


The Australian government have finally announced concessions to the proposed “Backpacker Tax”.

Scott Morrison, Treasurer announced the government would impose a 19% level of tax from the first dollar earned instead of the proposed 32.5% He also announced a drop in the cost of a working Holiday visa, reducing it from $440 to $390

Treasurer Morrison said these changes were designed to encourage backpackers to come to Australia as they were an “important source of labour for the agricultural sector”. He also added that The new rate of tax was “commensurate” with the likes of Canada, the UK and New Zealand.

The announcement has split opinion amongst agricultural and tourism groups with The National Farmers’ Federation chief executive, Tony Mahar, happy at the announcement and said that this is “really important for the growth of the agricultural sector”. However Margy Osmond of the TTF, suggested this was still a “cash grab” by the government but still welcomed some of the key concessions.

In his statement the treasurer also highlighted some other key points, including the age limit increased from 30 to 35 and that employers could employ working holiday makers in different areas during the 12 month period He also added that Tourism Australia would be given an addition $10millionAUSD to specifically promote the country to potential working holiday makers.

Summary of the Treasuer’s Announcement

-19% tax from first dollar earned
-95% of super taxed
-Age limit increased to 18-35
-Working Holiday Visa Fee dropped by $50 to $390AUSD
– Exit Levy increased by $5

– Tourism Australia to be given $10million to promote WHV and specifically target backpackers

One major positive thing from this announcement is that the period of uncertainty is over and that backpackers can now make informed decisions on their travel plans.

Is this a good deal? could more be done? Have your say, get in touch and let us know. for more info or to leave a comment please read





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Need Visa Information

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Need a visa for Australia
WHV's can ONLY be applied for; before arriving in Australia. Working Holiday Visa's* can only be granted before you arrive in Australia. For details about applying visit Australia's official website here ( or visit a Travel Agent or an Australian Embassy or Consulate in the country you are in.

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Need Superannuation Information

If your monthly wage is more than $A450, your employer must contribute an additional sum equal to 9.5% of your wage into a superannuation (pension) account for you. If you entered Australia on an eligible temporary resident visa you can, in most cases, access your contributions when you leave Australia, although the contributions will be taxed.

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